NZD/USD trades higher on lower rate cut,targets 0.6740
Kiwi recovered after RBNZ rate cut OCR by 25bpbs. Some analyst had expected a larger cut and the NZD strengthened after the announcement.
RBNZ argued that falling exchange rate will help to return inflation to 2%., which reduces the chance of further interest rate cuts.
Technically it is facing around 0.6650 and any break above will extend gains till 0.6740/0.6775.
On the downside minor support is around 0.6600 and nay break below will drag the pair further down till 0.6550/0.6500.
It is good to buy at dips around 0.6640 with SL around 0.6600 for the TP of 0.6740.
RBNZ argued that falling exchange rate will help to return inflation to 2%., which reduces the chance of further interest rate cuts.
Technically it is facing around 0.6650 and any break above will extend gains till 0.6740/0.6775.
On the downside minor support is around 0.6600 and nay break below will drag the pair further down till 0.6550/0.6500.
It is good to buy at dips around 0.6640 with SL around 0.6600 for the TP of 0.6740.